MCCCD Official Course Competencies:

ACC211  1994 Fall – 2011 Summer II

Financial Accounting

1.

Demonstrate generally accepted accounting principles. (I)

2.

Analyze, journalize, and post business transactions using debits and credits. (II)

3.

Prepare a simplified balance sheet and income statement. (III)

4.

Compare and contrast accrual and cash basis methods of accounting. (IV)

5.

Prepare an eight-column worksheet and make required adjusting, closing, and reversing entries to complete the accounting cycle. (V)

6.

Describe accounting procedures applicable to a merchandising business. (VI)

7.

Use special journals and subsidiary ledgers. (VII)

8.

Describe a petty cash system. (VIII)

9.

Prepare a bank reconciliation. (VIII)

10.

Describe uncollectible accounts receivable transactions. (IX)

11.

Explain and use perpetual and periodic inventory systems for a merchandising firm. (X)

12.

Describe inventory cost flow methods. (X)

13.

Calculate gross pay, deductions, net pay, and record payroll entries. (XI)

14.

Describe transactions applicable to acquisition, depreciation, and disposal of plant and equipment. (XII)

15.

Record transactions applicable to the formation of partnerships, profit distribution, and liquidation of partnerships. (XIII)

16.

Describe the corporate concept and record transactions for the issuance of stock and dividend distributions. (XIV)

17.

Record transactions involving the purchase and sale of treasury stock. (XV)

18.

Journalize long-term debt transactions. (XV)

19.

Describe accounting for short and long-term securities. (XVI)

20.

Prepare consolidated statements. (XVI)

21.

Prepare a statement of cash flows. (XVII)

22.

Analyze financial statements using ratios and other analytical tools. (XVIII)

23.

Describe general tax concepts applicable to various forms of business organizations. (XIX)

MCCCD Official Course Outline:

ACC211  1994 Fall – 2011 Summer II

Financial Accounting

I. Principles and Concepts of Accounting

A. The accounting equation

B. Double-entry system

C. Cash accounting system

D. Accrual acounting system

II. Recording Transactions

A. Nature of accounts

1. Real

2. Nominal

B. Classification of accounts

C. Journalizing transactions

D. Posting to the ledger

III. Financial Statements

A. Income statement

B. Capital or retained earnings statement

C. Balance sheet

IV. Revenue and Expense Recognition

A. Cash basis accounting

B. Accrual basis accounting

V. Worksheet and Closing

A. Adjusting entries

1. Purpose

2. Procedure

B. Closing entries

1. Purpose

2. Procedures

C. Reversing entries

1. Purpose

2. Procedures

VI. Accounting for a Merchandising Firm

A. Documents used for purchase and sales transactions

B. Merchandise inventory procedures

VII. Special Journals

A. Journal content and arrangement

B. Delegation of authority

C. Subsidiary ledgers

VIII. Petty Cash and Bank Reconciliation

A. Need, placement, and procedures for cash funds

B. Control of cash payments

IX. Accounts Receivable

A. Estimating uncollectible accounts

B. Writing off uncollectible accounts

X. Inventories

A. Perpetual versus periodic systems

B. Cost flow methods

XI. Payroll Accounting

A. Forms

B. Reports

XII. Plan and Equipment

A. Acquisition and disposal

B. Tangible and intangible assets

C. Depreciation, amortization, and depletion

XIII. Partnership Organization and Operation

A. Forming a partnership

B. Allocating operating results

C. Changing membership

D. Dissolving a partnership

XIV. Corporate Organization

A. Stock characteristics

B. Corporate income and retained earnings statements

C. Special stock transactions

XV. Long-Term Debt

A. Bond characteristics

B. Bond premium and discount

C. Time value of money

D. Other long-term debt

XVI. Accounting for Intercompany Investments

A. Investments in stocks and bonds

B. Consolidation methods

C. Consolidated statements

XVII. Statement of Cash Flows

A. Classifications of cash flows

B. Operating activities

1. Direct method

2. Indirect method

C. Interpretation of cash flow statements

XVIII. Financial Statement Analysis

A. Standards for financial analysis

B. Sources of information

C. Tools and techniques

D. Common ratios

XIX. Tax Concepts

A. Sole proprietorship

B. Partnership

C. Corporation